Breaking: Bitcoin plunges below $13,500 as Hong Kong SFC regulates all cryptocurrency exchanges

The Hong Kong Securities and Futures Commission, will regulate all cryptocurrency trading platforms.
Bitcoin and Ethereum extended their bearish legs, sliding under $13,500 and $380, respectively.

FXStreet Team FXStreet

The cryptocurrency market took a turn downwards on Tuesday towards the end of the Asian session after the Securities and Futures Commission (SFC) in Hong Kong announced plans to regulate all trading platforms. Bitcoin dived under $13,500, while most of the major cryptoassets seemed to have followed in the footsteps. For instance, Ethereum crossed below the $380 mark, giving credence to a bearish narrative, eying $370.

According to Reuters, the Asian cryptocurrency trading hub, Hong Kong will require all platforms that offer buying and selling services to operate under the SFC's oversight. The new directive cuts across the board even for those who do not trade securities.

Previously, the regulator had taken a hands-off role by allowing an 'opt-in' framework for the platforms that offer trading services in the city. However, it became a growing concern because some platforms kept sliding farther away from the regulatory radar. The new directives were made public by the SFC CEO, Ashley Alder, in a speech released on November 3.

Bitcoin downtrend shoots past $13,500

Following the above news, the cryptocurrency market experienced some volatility, with Bitcoin diving under $13,500. At the time of writing, BTC/USD held above the 50 Simple Moving Average in the 4-hour timeframe. The flagship cryptocurrency needs to keep this support dearly. Otherwise, extended losses could come into the picture and retest support at $13,250 and $13,000, respectively.